Credit Cards Consumer Math

A Case for Cards One of the fastest and most concrete ways to improve Credit Score Free Short Term Loan Credit card companies often offer bonuses and points for use If paid off at the end of every month, they can work for you!

The Dark Side Interest Rates are sneaky dangerous Assuming 14% interest and 4% min payment Instead of paying off a $10,000 sofa for 13 years, if you’d invested the same amount and earned 8%, it would’ve turned into about $27,000!

The Dark Side Interest Rates Late Fees Convenient

Getting a New Card NOT the ones in the mail Secured Credit Card Out of every thousand students who are mailed offers, 150 accept them, an astonishingly high number. Secured Credit Card Without income; Through the bank Compare Cards Online Bankrate.com

Getting a New Card Avoid Cash-back rewards Rewards are important Often less valuable than flights, etc. Rewards are important Find one that gives you something valuable If you don’t travel don’t earn flights Don’t go crazy Between 2-3 cards; Take it slow

The 6 Commandments Pay it off quickly Do NOT make a late payment Payment history is 35% of credit score

The 6 Commandments Get all Fees Waived Call and ask to have the fee waived Be persistent Have the attitude that it will be waived

The 6 Commandments Negotiate a lower APR Keep your credit card active Should not matter if payments are made Keep your credit card active Use it once every three months History improves credit score Get more Credit Use your rewards

Things to Avoid Avoid Closing Costs Manage Debt to avoid damaging Credit Score Think ahead before closing accounts More credit is better when applying for loans Don’t play the “0% Transfer” game Don’t get suckered by “Apply Now” Avoid paying for the group and pocketing the cash

Paying It Off

References https://s3.amazonaws.com/earn1k/bonus/I-Will-Teach-You-To-Be-Rich_Chapter1.pdf Resources: Bankrate.com Dinkytown.net